Startup One Stop

Good morning, All,

It’s been quite a year. Dell went private. Twitter went public. And so did Edward Snowden. The bottom line: we learned that technology is a double-edged nuclear weapon. We always knew we were being tracked. For years now, any google search showed us that, given the targeted ads that we were then delivered. We just were unaware all of our information was being turned over to the government. By all of the big players.

Transparency, wasn’t  it? Read More...

Good morning, All,

First, don’t forget that our breakfast is tomorrow morning, so don’t forget to register!

We were guests of Dell World last week, and despite the fact that this list is filled with entrepreneurs who hope to someday go public or be acquired, we must say that there was a special energy being knee deep in employees of a company whose founder had just taken it private again. No shareholders to look over his shoulder and second-guess him. The freedom to focus long-term, rather than having to keep an unwavering eye on the bottom line, to the exclusion of all else, in order to appease shareholders. Elon Musk was other keynote, and while he didn’t overtly comment on shareholders, he certainly did imply that with the wild fluctuations in the Tesla stock price, he certainly had his share of challenges – and shareholder lawsuits. Read More...

Good morning, All,

We came across a statistic that hiring was up 4% in the tech sector in NYC. We expected it to be higher as well, considering that there is a ‘tech shortage’ and is there a company in the city that isn’t screaming for tech help and even help in other areas? They may be screaming, but they just don’t seem to be pulling the trigger and there lies the rub. We come across articles all the time about how to hire your next employee, culture fit (which is more or less code for ‘no one over 30 need apply’), and on and on. The fact is that most startups not only don’t know how to hire: they really don’t understand the process.

1. Recruiters have been demonized. There are those recruiters who ‘smile and dial,’ which is the offline equivalent to blanketing linkedin or whatever medium they’re using, with little understanding of a potential employee’s skill set. They’re looking at key words, rather than the overall picture. That’s what many startups do as well.
2. People have figured out how to work with keywords and someone might look great on ‘paper,’ and have all of the right qualifications. But why do they job hop every four months. Are they ADHD, consultants/freelancers, or is it that those keywords seem to get them in the door every time, but they just can’t do the job. Period.
3. Startups turn to recruiters when they’re having trouble filling a position, but… All well and good, but more often than not, they figure that since they have to pay that recruiter, they need to find someone who can do two jobs in one. We kid you not: we were once asked for fill a spot for a marketing director – who would also be the lead developer and creative director. Three very different jobs; three very different salaries, and of course, the base salary was one that reflected the lowest position. New York cab drivers can defy the laws of physics and create three lanes of traffic where two should be. A Boston-born recruiter could no doubt do the same – but could not find a marketing director/lead developer/creative director. Not someone who could do all three well, or probably even adequately. Pick one, and remember, with employees as with hard goods: buy good or buy twice. Simple physics.
4. Internet speed. Things happen fast online, but that doesn’t mean that someone with five years of experience can do the job of someone with 15 years of experience. Things happen in cycles and someone who has been through it three times a long is much more likely to know where the landmines are. They may cost you more at the onset, but we all know how expensive mistakes tend to be. Again, buy good or buy twice.
5. Everyone is looking for good talent, so when a recruiter presents you with the perfect applicant in the first resume, it’s because that recruiter knows what he or she is doing, and doesn’t want to waste anyone’s time. Startups ask for several candidates. Fair enough, but when presented with a number of good candidates, the startup client often can’t decide, so they ask to see more candidates, or decide to wait. Don’t expect that that first candidate you met, whom three months later you decided was absolutely perfect, will still be available.
6. Do not hire a kid out of school as your internal HR person or recruiter. Seriously, you’re going to tell us that someone who has never held a job before is going to be your gatekeeper? That’s a serious position. Hire a serious person, who knows what he or she is doing.
7. Try not to hire by committee. Not everyone is going to like every candidate who comes through the door. Fine to get consensus, but is there someone on your team who might feel threatened by the new hire? You might miss out on a good one. Listen, but keep your own counsel.
8. Our personal favorite: startups that post a job, then bring in candidates and ‘test’ them by asking that very seasoned candidate to write their five-year marketing plan, or ask the business development candidate to write their five-year expansion plan. That’s not a test: that’s trying to get work for free. Pay for that experience. It’s called a consulting fee. Not everything is free – especially not experience. Would you ask a mobile developer to build the product, as a ‘test.’ Give people with expertise in other disciplines the same consideration.
9. Most job descriptions we personally see that come across from startups are more or less wish lists. They want to spend as little as possible so will slip in the phrase, ‘nice to haves,’ and if you do that, remember, it doesn’t say ‘requirement.’ Either be honest about what you really want/need and compensate accordingly, or be prepared to waste a lot of time searching for someone who doesn’t really exist in either of the two known universes.
10. Hire entry level coders/programmers/marketers/whatever, too. We know that in startupland, one has to hit the ground running. Again, we saw a statistic that one in two graduates with a computer science degree can’t find a job – or can’t get hired. (We’ve personally had that experience with a Georgia Tech grad, who participated in hackathons almost weekly – and won or placed second in every single one. There wasn’t a NY company who’d hire him, so he sent his resume to ten companies on the west coast and got six job offers). New Yorkers tend to be in such a hurry to get out and grab that pizza for lunch, that they overlook the filet mignon dinner that’s waiting for them at home. Don’t just look at what’s on your plate: consider the big picture.  And if you’re bringing on interns, offer an incentive: that there may well be a job there for them.  We do understand that not all Millenials are the same, and that there’s a reason why there is a bifurcation: that GenX was followed by GenY – and GenWrecks.

And remember: you’re building a company and hiring talent, not looking for your next BFF. Choose wisely. Make a decision. We know it isn’t easy: hiring is always a bear. Onward and forward. Read More...

Good morning, All,

Kool-Aid is so 90s, and since soylent is the Drink of the Future, we’ll play.

We’re getting to that time again – end of the year, when everyone comes out with their Top Ten This and Best of That. We personally believe it’s the perfect time to take a hard, cold look at the past year, and be honest about the state of the industry. Read More...